THE CRITICAL ROLE OF FOOD AND DRINK MANUFACTURING Introduction
Adapts fast to the future With the UK committed to achieving net-zero emissions by 2050, food and drink manufacturers are stepping up sustainability efforts. Global manufacturers and small enterprises alike are adopting renewable energy, upgrading to energy-efficient machinery, and implementing advanced recycling and waste-reduction systems. By going green, the industry not only meets regulatory requirements but also gains a competitive edge. Companies are also investing in technology to stay competitive. Robotic arms, precision packaging machines and automated sorting systems have become staples in modern production lines. The payoff is efficiency: faster throughput, reduced error rates and lower operational costs. Employees are freed up to focus on higher-value work. The UK’s food and drink manufacturing sector is more than a source of employment and exports. It is a foundation of economic stability, growth and innovation across the country. As the government pursues its Industrial Strategy, supporting this sector could yield outsized returns in productivity, sustainability and community resilience. Through investment in automation, digitisation and sustainable practices, UK food and drink manufacturers are not only safeguarding the country’s economic future but ensuring a more resilient, secure, greener one. This is an industry that the UK can ill afford to overlook.
Artificial intelligence is also finding its place in the sector. Machine learning algorithms forecast demand, optimise inventory and identify quality issues early. Predictive maintenance powered by AI keeps production lines running smoothly by diagnosing potential faults before they disrupt operations. These digital tools enable manufacturers to keep goods competitive in both domestic and international markets. With the use of data analytics, businesses can make informed decisions at every level, from improving product quality to reducing waste. Digital twins – virtual replicas of production environments – are helping companies trial and improve production processes before implementing them in real life. The result is greater productivity and more efficient use of resources across the board.
Drives regional economic growth and job creation Each direct job in the sector supports more than three jobs elsewhere, making it a multiplier of local prosperity. It creates well-paid, reliable jobs and long-term careers in communities often underserved by other industries. Jobs range from entry level work on the factory floor right through to highly skilled roles in engineering, food science and digital technology. By purchasing domestic agricultural output, the sector also supports the UK’s farming community, creating a virtuous cycle of local sourcing and production. At a time when the government’s growth and opportunity missions seek to bridge regional inequalities, food and drink manufacturing offers a model of local economic growth. Feeds the UK every day and in times of crisis By sourcing locally and internationally, the food and drink sector provides variety but also stability, cushioning against potential shocks. During the COVID-19 pandemic, the war in Ukraine and post-Brexit trade shifts, for instance, manufacturers demonstrated their resilience, swiftly adapting to supply chain disruptions and market volatility, keeping shelves stocked and the public reassured. Fuels export growth The UK’s food and drink products are prized worldwide with exports reaching a record £25 billion in 2022. Rising demand leads to increased production and more jobs, further solidifying the industry’s role as a driver of economic growth.
£38 billion gross value added (GVA) to the UK economy 17% of UK manufacturing GVA – thebiggest manufacturing sector
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12,515 businesses
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474,000 people employed
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Truly national, in all parts of the UK
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£24 billion of food and drink exports to over 200 countries 70% of UK land usage is in agriculture, with food and drink manufacturing the largest customers Around a quarter of UK's domestic CO2 emissions are from the food sector, with the ability to have a huge impact on Net Zero
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Sources: FDF, Food Foundation, gov.uk
Food and drink is the largest manufacturing sector in the UK, accounting for almost 20% of total manufacturing and generating more than £142 billion in turnover. Nearly half a million people in over 12,500 businesses – ranging from heritage brands to innovative startups – are employed in the sector. For every £1 the sector generates in gross value added (GVA), an additional £2.48 circulates back into the economy through supply chain activity and employee spending. Food and drink manufacturing is an undeniably powerful engine for economic growth, and its impact cannot be understated.
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